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CSCI Morning News Circular - 20181224

1. Macro News     

• Beijing open to more trade negotiations. The Ministry of Commerce confirmed a plan for more trade talks with the United States in January, adding that Beijing continues to make positive gestures. Ministry spokesman Gao Feng said at a weekly briefing on Thursday in Beijing that there were plans to hold further talks on trade with the US, and the two sides have been in close contact.  [SCMP]
• Saudi Banks Reach $4.5 Billion Settlement Over Islamic Taxes. Major banks in Saudi Arabia reached settlements worth a combined 16.7 billion riyals ($4.5 billion) with the kingdom’s tax authority over a religious levy the lenders had been kicking against.  [Bloomberg]
• More economic support steps promised. The head of China's top economic planning agency says it will roll out more support measures to boost the economy, especially in the advanced manufacturing sector, state media reported. China will vigorously support the private sector and resolve the financing difficulties of private firms, Xinhua News Agency quoted NDRC chairman He Lifeng as saying at a year-end conference.  [The Standard]

1. Industry News                      

• Europeans pose threat to Huawei. The US dispute with China over a ban on Huawei is spilling over to Europe, the company's biggest foreign market, where countries are starting to shun its network systems over security concerns. Some European governments and telecom firms are following the United States' lead in questioning if using Huawei for mobile networks could leave them exposed to snooping by Beijing.  [The Standard]
• HKEX Studying How To Reform, Improve New Shr Issue Mechanism. HKEX CEO Charles Li in his blog said that 28 new economy companies have gone public in Hong Kong, as of 18 December, this year. The 209 companies that listed this year raised about HK$280 billion, enough for HKEX to finish first in the global IPO fundraising table this year. [AAStocks]
• Chinese Aluminum Smelters Halt Capacity as Slump Hits Margins. China’s aluminum smelters will halt more than 800,000 tons of capacity after a slump in the price of the metal wiped out margins, the China Nonferrous Metals Industry Association said in a statement Friday.  [Bloomberg]
• Corporate News
• Blackstone buys Shanghai office and mall project from Singapore’s Mapletree Investments for US$1.25bn. The Blackstone Group has bought an office and retail complex in Shanghai from Mapletree Investments of Singapore for about US$1.25bn, the latest mega deal in China’s commercial property sector clinched by offshore investors.  [SCMP]
• Tencent joins Naspers in US$1 billion funding for Indian food delivery service Swiggy. Tencent Holdings joined Naspers in a US$1bn investment in Indian food delivery service Swiggy, which gains a potentially valuable ally in China’s largest social media and gaming company.  [SCMP]
• Qualcomm Wins Ban on Some Apple IPhone Sales in Germany. Qualcomm Inc. won an injunction that allows a ban on sales of some iPhone models in Germany, giving the chipmaker another weapon in its long and bitter licensing battle with Apple Inc. only 10 days after winning a similar judgment in China.  [Bloomberg]
• Beijing Jingcheng Plans up to 84.4m A Shares Placement. Beijing Jingcheng Machinery Electric will sell shares to as many as 10 investors including its controlling shareholder, according to filing to Shanghai stock exchange. Proceeds will be used to develop hydrogen energy and other projects, replenish working capital and repay debts.   [Bloomberg]
• China’s State Power Starts Building 900MW Offshore Wind Farm. State Power Investment Corp., a Chinese power operator, started construction of a 900-megawatt offshore wind farm in the nation’s southern province of Guangdong. The coastal wind venture will generate 2.7bn kilowatt hours of electricity annually for Jieyang city once completed, State Power said.  [Bloomberg]
• Hong Kong’s Chow Tai Fook Said in Exclusive Talks to Buy FTLife. Chow Tai Fook (Holding) Ltd., the Hong Kong conglomerate known for its chain of jewelry shops across China,is in exclusive talks to buy FTLife Insurance Co. A deal could value FTLife at close to $3bn.  [Bloomberg]
• COFCO Intl teams up with global grain trading giants. COFCO International Ltd, a subsidiary of COFCO Group, China's largest food trader, announced on Thursday its partnership with what are known as the ABCD companies, to standardize and digitize global agricultural shipping transactions.  [China Daily]
• Chinese, Ukrainian companies to jointly upgrade power unit at Ukraine's thermal plant. Chinese company Dongfang Electric International Corporation and Ukrainian company Donbasenergo on Thursday signed an agreement on the joint reconstruction of a power unit at Sloviansk thermal power plant (TPP) in eastern Ukraine.  [China Daily]
• Sinotruk powers up, exporting its quality products globally. China National Heavy Duty Truck Group aims to build its brand into a world-class one abreast of thriving international companies such as Daimler, Benz and Volvo, according to Tan Xuguang, the group's chairman.  [China Daily]
• China's ICBC branch named 'International Bank of the Year' in Turkey. ICBC Turkey, a branch of the Industrial and Commercial Bank of China (ICBC), on Thursday was named the "International Bank of the Year" for its "distinguished contributions" to Turkey's economy.  [China Daily]
• HSBC Insurance Sells 49% Stake in Malaysian Insurance Biz to FWD. HSBC Insurance sold 49% stake in HSBC Amanah Takaful (Malaysia) Bhd to FWD, foreign media reported. HSBC Bank Malaysia Chief Executive Officer Stuart Milne said the related deal has been approved, and is expected to complete in 1H19.   [AAStocks]
• UCD, BYD Establish Strategic Partnership Relationship. UCD announced that the company and BYD established a strategic partnership relationship and entered into a business cooperation agreement. Both parties will give full play to each of their advantages in the field of rail transit and achieve collaboration in terms of mutual business aid, market development, innovation of business model and other areas.  [AAStocks]
• Geely Subsidiary to Form Battery Cells JV with RMB490M.Geely Auto announced that Zhejiang Jirun, its 99%-owned subsidiary, and CATL Battery, an independent third party, agreed to establish the JV company to engage in the research and development, manufacture and sale of battery cells, battery modules and battery packs.  [AAStocks]
• Mengniu to Buy Shengmu Organic Milk Unit’s Stake for 303.4m Yuan. Inner Mongolia Mengniu, a unit of Mengniu Dairy, agreed to buy 51% stake of a subsidiary of Shengmu for 303.4m yuan, Shengmu says in filing to Hong Kong stock exchange.  [AAStocks]
• China Life Forms JV with RMB2B to Invest in AVIC. China Life announced that the company (as the Limited Partner) intends to enter into the Partnership Agreement with China Life Properties (as the General Partner) by 31 January 2019 for the formation of the Partnership.  [AAStocks]
• China Telecom 4G User Net Addition Expedites to 4.09M in Nov. China Telecom announced that the total number of mobile subscribers reached 299.78mn in November, with a net increase of 2.92mn. Among which, 4G users amounted to 237.8mn, with a net increase of 4.09mn, beating October's net addition value of 3.26mn. [AAStocks]